Stocks rose Thursday, while another surprise jump in initial unemployment claims boosted confidence on Wall Street that Congress leaders will soon accept a coronavirus aid package.
The Dow Jones industrial average rose 101 points, 0.33%, to 30,255, the S&P 500 gained 0.36% and the Nasdaq rose 0.48%.
The S&P 500 and Nasdaq, with high technology intensity, traded at intraday record highs early Thursday’s session.
As Congress put the finishing touches on the $ 900 billion aid plan, some details have emerged of what will be included in the package.
People informed of the negotiations told Bloomberg that the draft plan includes $ 600 in payments for individuals, $ 300 a week in supplementary unemployment insurance payments and small business benefits. It also includes approximately $ 17 billion for airlines.
The package omits aid to state and local governments and protection of judicial responsibilities, subtracting points that have maintained previous negotiations.
Relief may not arrive soon enough for a clueless American labor market.
Unemployment claims jumped again unexpectedly last week as companies continued to cut hiring amid the worst increase in the coronavirus pandemic to date.
The Department of Labor reported Thursday that 885,000 Americans first applied for unemployment benefits the week ended Dec. 12, up from 862,000 revised claims the previous week and the highest since early September. . Economists surveyed by FactSet expected 800,000 claims.
The figures reflect ongoing problems in the labor market, where the pandemic has continued to impact employers ’decisions on keeping staff on the payroll, even during the critical shopping season.
“If doubts remained about Covid-19’s historic cases of rising unemployment demands, they were affected by last week’s numbers,” said Robert Frick, a corporate economist at the Navy Federal Credit Union.
“The federal aid package cannot arrive one day too early to mitigate job loss, declining retail spending and a number of other measures that have been reduced in the last two months,” he added Frick.
Federal Reserve Chairman Jerome Powell pledged Wednesday that the central bank would continue to support the U.S. economy.
The Fed said it would keep pace with the $ 120 billion-a-month bond purchase program, and said its broader housing strategy would remain in place until “advances have been made.” substantial ”in meeting its employment and inflation targets.
Powell said he expects the economy to pick up at a healthy pace in the second half of 2021, as coronavirus vaccines are widely distributed.
Modern (MRNA) – Get the report The candidate for the coronavirus vaccine will spend Thursday in front of an advisory group of the Food and Drug Administration. The full FDA could close emergency use for the vaccine as early as Friday.
Earlier this week, FDA staff said Moderna’s vaccine against Covid-19 was “highly effective” in preventing the life-threatening disease. Modern said its vaccine candidate has an effectiveness rate of 94%.
The best values of the year from TheStreet: Modern is number 3
Bitcoin traded above $ 23,000 for the first time in history as investors and speculators joined.
The world’s largest digital currency has tripled during 2020. It topped $ 20,000 for the first time, just on Wednesday.